Heyman company bonds have 4 years left to maturity.interest is paid annually and the bonds have $1000 par value and the coupon rate of 9%.
a. What is the yield to maturity at a current price of(1) $829 and (2)$1104?
b. Would you pay $829 for each bond if you thought a fair market interest rate for such bonds was 12%-that is if rd=12%? explain your answer.